Baker Hughes reported an 11% rise in adjusted net income for the fourth quarter, delivering $772 million compared with $694 million in the year-ago period. GAAP diluted EPS came in at $0.88, while adjusted diluted EPS reached $0.78. Revenue held steady at $7.4 billion, in line with the prior year, as gains in gas technology equipment and services offset a modest downturn in oilfield services and equipment sales. Adjusted EBITDA climbed 2% year-over-year to $1.337 billion, supported by disciplined cost actions and resilient margins in the OFSE segment.

Order intake for the quarter totaled $7.9 billion, including $4.0 billion in Industrial & Energy Technology (IET) orders. This fueled a record year-end RPO of $35.9 billion, with IET backlog alone reaching $32.4 billion—up from $28.7 billion one year earlier. The book-to-bill ratio exceeded 1x, driven by strong demand for LNG liquefaction trains and power systems solutions, with non-LNG equipment representing approximately 85% of IET orders for the second consecutive year.

Operating cash flow for the quarter rose 40% year-over-year to $1.662 billion, reflecting improved working capital efficiency and customer down payments. Free cash flow doubled to $1.341 billion, marking a record full-year free cash flow of $2.732 billion. These results underscore the company’s ability to convert earnings into cash and fund portfolio actions while maintaining a healthy liquidity position.

Looking ahead to 2026, Baker Hughes expects IET orders to remain robust, underpinned by continued LNG project awards, increased FPSO and gas infrastructure investments, and stable power systems demand. The company projects mid-single-digit organic Adjusted EBITDA growth, with IET margins expanding toward a 20% target and OFSE margins remaining flat. As it enters Horizon Two (2026–2028), Baker Hughes is realigning its portfolio toward an industrialized energy solutions model, emphasizing reduced cyclicality, enhanced cash flow durability, and a differentiated lifecycle services mix.